SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Q3 2023 Earnings Presentation
40 slides from SpareBank 1 Helgeland's earnings presentation, 2023
Slide 1: Presentation Q3 2023
Presentation Q3 2023 - A driving force for growth in Helgeland
Slide 2: Presentation 30.09.23 (SBH group)
Presentation 30.09.23 (SBH group) Hanne Nordgaard Chief Executive Officer
Slide 3: Main features
Intern - Helgeland • Main features
Slide 4: Financial targets
Intern - Helgeland Financial targets Profitable ROE The bank has a ROE target on level with comparable >11 % banks, p.t. 11 %. Solid CET1 The target for CET1 of 17.5 % includes a buffer of 1.3 %. >17.5 % Efficient Cost growth Long term cost target of 40 % of income C/I: <40 % Responsible Dividend ra
Slide 5: Main features per 30.09.23
Main features per 30.09.23 Gross Profit ROE* MNOK 514 (382) 11.2 (8.3) % *adjusted for hybrid capital Solidity Total assets CET 18,9 37.2 (38.3) mrd. Kr (19,0) %
Slide 6: Profit & loss
Intern - Helgeland • Profit & loss
Slide 7: Summary Q3
Summary Q3 SpareBank 1 Helgeland (group) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net interest- and credit comission earnings 223 233 233 254 Net comission earnings 39 36 40 40 Other operatios income 0 2 4 1 Ordinary operations cost 101 101 100 100 Result basic operations 161 170 177 195 Write-downs lending
Slide 8: Summary Q3
Intern - Helgeland Summary Q3 Strong basis operation • Net interest of MNOK 254, an increase of MNOK 21 from last quarter. • Net commission income of MNOK 41, an increase of MNOK 3 from last quarter. • Net value change and gains/loss on financial investments amounts to MNOK -2, a decrease of MNOK 8
Slide 9: Good profit development
Intern - Helgeland Good profit development Profit development (MNOK) Profit 563 Strengthened gross profit of MNOK 514 514 (382) pr. 30.09.23 181 • ROE of 11.2 %* 183 (ROE is adjusted for hybrid capital) 264 131 15 147 78 11,2 % 104 78 184 147 93 2021 2022 2023 Q1 Q2 Q3 Q4 ROE %
Slide 10: Good profit
Intern - Helgeland Good profit Gross profit is MNOK 132 higher than for the corresponding period last year. Change in gross profit (MNOK) • Increase in net interest 700 -21 • Reduction in commission income is -9 53 -52 160 600 related to bonus commission of 500 MNOK 9 recognized in Q1 2022. 400 • In
Slide 11: Good development in net interest
Intern - Helgeland Good development in net interest • Net interest and commission income 3 amounts to MNOK 254 in Q3, an 7 6 254 increase of MNOK 21 from last 4 233 233 quarter 223 2,67% 2,40% 2,43% • In % of average total assets, net 2,28% interest and commission income is 2,27% 2.67 %, up from 2.4
Slide 12: Stable commission income
Intern - Helgeland Stable commission income 41 40 40 • Increase in commission income from last 39 6 36 6 3 quarter 4 1 Comission on loans transferred to 2 1 mortgage company 7 2 • Decrease in commission income from 1 14 loans transferred to SpaBol. 12 12 Guarantee commission 13 12 0,43% 0,43% 0,42%
Slide 13: Stable and healthy cost development
Intern - Helgeland Stable and healthy cost development. Operating cost (mnok) and % of income • The costs are within target (cost/income <40 %). 101 101 100 100 35,1 % 34,2 % 35,3 % 34,1 % Q4 2022 Q1 2023 Q2 2023 Q3 2023 Operation cost Operation cost %
Slide 14: Normalized write-downs this quarter
Intern - Helgeland Normalized write-downs this quarter • MNOK 11 in Q3 2023 against MNOK 37 last quarter 0,60% • The write-downs in the quarter 0,50% is a combination of individual and model-based write- 0,40% downs. 0,30% 64 • The expectation level of 0.18 % 57 0,20% 0,20% current year is challenge
Slide 15: Lending
Intern - Helgeland • Lending
Slide 16: Weak lending growth in 2023 (SpaBol included)
Weak lending growth in 2023 (SpaBol included) CM 26,6 % RM 73,4 % 44000 Development gross lending CM/RM (MNOK)) 39000 Development gross lending (MNOK) 39000 10.043 37000 34000 9.979 9.968 9.863 9.474 4,1 % 1,1 % 0,8 % -0,6 % 35000 29000 24000 33000 37.453 37.426 37.408 19000 37.347 36.810 31000 27.4
Slide 17: Lending CM – good industry spread
Intern - Helgeland Lending CM – good industry spread Lending distributed in sector • Good diversified lending Real estate 12,2 % 10,8 % portfolio in the CM and Farming and forestry 4,9 % loyal corporate customers. 4,6 % 3,9 % Share CM of total lending Construction and power 2,6 % 33.4 (29.8) % equal
Slide 18: Lending CM – Real estate
Intern - Helgeland Lending CM – Real estate • Low vacancy in all segments on the real estate side. Under coverage on Real estate - allocation pr segment housing and industrial areas. • 53 % of real estate categorized in low 7% risk. 21 % in best middle risk class. 93 % 2% Boligeiendom 20 % 5% of the
Slide 19: Non-performing and impaired commitments
Intern - Helgeland Non-performing and impaired commitments • Net non-performing and impaired commitments Net defaulted and com. exp. to loss amounts to MNOK 329, 600 • Decrease of MNOK 40 from 500 last quarter • Increase of MNOK 85 so far 400 in 2023 300 200 1,1 % • The increase so far this year is
Slide 20: Deposits
Intern - Helgeland • Deposits
Slide 21: Stable, high deposit level
Stable, high deposit level Deposit development (MNOK) 31.000 Deposit decelopment CM/RM (MNOK) 26.000 10.071 10.715 10.637 9.812 21.000 9.657 16.000 10,1 % 0,7 % -6,0 % -2,6 % 25.046 25.377 25.327 25.129 24.152 11.000 15.256 15.234 14.662 14.495 14.492 6.000 4,0 % 1,0 % -0,2 % -1,1 % 0,0 % 1,2 % 4,1
Slide 22: Good and stable deposit allocation
Good and stable deposit allocation 100 % 90 % 27.000 Development deposits (MNOK) 80 % 25.000 70 % 23.000 60 % Over MNOK 8 21.000 50 % Between MNOK 2-8 19.000 40 % Between MNOK 1-2 17.000 30 % Under MNOK 1 15.000 20 % 13.000 10 % 11.000 jan. 20 jan. 21 jan. 22 jan. 23 mai. 18 mai. 19 sep. 18 sep. 19
Slide 23: Deposits CM
Intern - Helgeland Deposits CM Customer deposits Municipalities 11,3 % 11,8 % • Good diversity in the deposit 10,2 % Transport and services 11,9 % portfolio in the CM. 4,4 % Construction and power 3,1 % • Share CM deposits amounts to 39.2 Farming and forestry 4,5 % (40.0) % or MNOK 9 812 (9 657) of
Slide 24: Funding
Intern - Helgeland • Funding
Slide 25: Funding – Increased deposit ratio
Intern - Helgeland Funding – Increased deposit ratio Funding development • Share customer deposits has 2,4 % 2,5 % 2,4 % increased in 2023 as a 17,1 % 13,0 % 11,4 % consequence of transferred 10,2 % 8,8 % loans to SpaBol. 13,0 % 74,4 % 77,5 % 67,4 % 2021 2022 30.09.2023 Deposits Senior CB FO
Slide 26: Funding due
Intern - Helgeland Funding due • Share long term funding 78.8 % (76.7) % • Combined duration of 2.3 (2.1) years. Duration in the mortgage company of 2.2 years. 1.500 969 1.000 500 276 430 500 500 500 300 2023 2024 2025 2026 2027 2028 2029 Senior OMF
Slide 27: Liquidity buffer
Intern - Helgeland Liquidity buffer Interest bearing securities: • Duration portfolio 1.6 (1.8) years • 99.5 % rated A- or better Sector distribution interest portfolio • 98.3 % is OMF or state/ municipality guaranteed bonds. 45% CB 1 • Municipality papers are actively 42% used as short-term liquidi
Slide 28: Transfer of loans to mortgage companies
Transfer of loans to SpareBank 1 Boligkreditt is 2.51 % mortgage companies owned by SpareBank 1 Helgeland Maximum limit for transfer to mortgage companies is • SpareBank 1 Boligkreditt (SpaBol) is an issuer of covered bonds maximum 35 % of the groups gross lending, and 50 % that is jointly owned by
Slide 29: Solidity
Intern - Helgeland • Solidity
Slide 30: Good capital adequacy
Intern - Helgeland Good capital adequacy Capital adequacy Development capital adequacy • The banks capital adequacy is 2,4 % higher than the target. 2,5 % 2,3 % 2,0 % 2,1 % • The board of directors assumes 2,0 % that the capital is used for future growth or alternatively distributed through higher f
Slide 31: Prospects ahead
Intern - Helgeland • Prospects ahead
Slide 32: Unemployment Recruitment
Unemployment Recruitment The region experience a shortage of Unemployment in Helgeland and in Nordland is lower qualified labour. Further corporate than for Norway overall. establishments will reduce the access further. Norway: 1.7 % Nordland: 1.3 % Helgeland: 1.1 % The green shift provides large op
Slide 33: Prospects ahead
Prospects ahead Net interest is expected to strengthen further after interest rate increase. ROE target of 11 % after tax from last part of 2023 is expected fulfilled for 2023 Stable commission income of some over 0.30 % of total assets For the corporate market, an increase in activity is expected i
Slide 34: Appendices
Intern - Helgeland • Appendices
Slide 35: Profit & loss
Profit & loss SpareBank 1 Helgeland (group) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net interest- and credit comission earnings 144 148 168 174 184 202 223 233 233 254 Net comission earnings 21 22 36 46 38 41 39 36 40 40 Other operatios income 0 4 -1 2 2 4 0 2
Slide 36: HELG- EC development and OSEEX last 12 months
HELG- EC development and OSEEX last 12 months 31.12.20 31.12.21 31.12.22 30.09.23 EC fraction opening balance 76.4 % 77.3 % 79.9 % 79.9 % Number of EC's 20.9 27.0 27.0 27.0 price 86.0 131 120 121.0 Stock exchange value 1 797 3 537 3 240 3 267 Accounted equity per EC 129 124 135 135 Profit per EC 12
Slide 37: Driving force for sustainable growth, competence and cooperation
Intern - Helgeland Driving force for sustainable growth, competence and cooperation Sustainability in the bank • New sustainability strategy was decided in December 2022. •The banks first sustainability report delivered for 2022, integrated in the annual financial report. •TDCF analysis of climate r
Slide 38: 50 % north norwegian ownership
Intern - Helgeland 50 % north norwegian ownership 20 largest owners Foreign owners 4% Sparebankstiftelsen Helgeland 28,1 % SpareBank 1 Nord-Norge 20,0 % Pareto Invest AS 7,9 % VPF Eika Egenkapital 4,8 % Verdipapirfondet Nordea Norge Verd 3,7 % Other norwgian Spesialfondet Borea Utbytte 2,1 % owners
Slide 39: SpareBank 1 Helgeland
Intern - Helgeland SpareBank 1 Helgeland • Vision: a driving force for growth in Helgeland. • Business concept: SpareBank 1 Helgeland is the profitable and leading local bank building future Helgeland. • Offices: The bank has offices in Mo i Rana, Mosjøen, Sandnessjøen and Brønnøysund. • Total asset
Slide 40: Contact information
Contact information Main office Posal address: Postboks 68, 8601 Mo i Rana Visiting address: Jernbanegata 15, 8622 Mo i Rana Tel: 75 11 90 00 Web: www.sbh.no Organization number: 937 904 029 Management Hanne Nordgaard CEO 416 85 777 – Hanne.Nordgaard@sbh.no Investor Relations Anne Ekroll CFO 913 36
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